session 4: unit 1 data response questions ray powell
TRANSCRIPT
Session 4:
Unit 1 Data Response Questions
Ray Powell
Questions on Markets &Market Failures
Unit 1 data response question papers usually contain 2 questions covering:
Question 26: a market (or markets)
Question 27: market failure(s)
How Data Response Questions are structured in the Unit 1 & Unit 2 exams
[01] Define the term
[02] Compare (or possibly identify)
[03] Explain
[04] Evaluate (or possibly assess, or possibly Do you agree? . .Justify your answer.
Identify two points of comparison between the changes in the price indices for coffeeand tea over the period shown by the data in Extract A. (8 marks)
Extract A
Part [03] of a Data Response Questionon a Market
Part [03] of a question on markets may require candidates to perform 3 tasks:
• Draw an S & D diagram to show an equilibrium
• Identify a factor shifting the S or D curve
• Illustrate and explain the effect of the shift
• Monopoly
• Merit goods and Demerit goods
• Public goods
• Externalities
• Income and wealth inequalities
The Data Response Question onMarket Failure
Usually one of the two Data Response Questions in the Unit 1 exam is on a well-defined market failure. The main types of market failure are:
These diagrams can be used to illustrate ‘bad’ and ‘good’ Monopoly
Merit Goods & Demerit Goods
Public goods and private goods
Practise drawing diagrams such as this one:
And this one: Resource misallocation and negative externalities
The effect of consumers possessing imperfect information(information failure)
Returning to the final part of a Unit 1 data response question, three types of format are commonly used
Type 1: Focusing on the role of market forces
Type 2: Focusing on a particular type of government intervention
A variant of Type 2, focusing on methods of government intervention to correct examples of market failure
Type 3: Questions asking for an evaluation of the case for and against government intervention to deal with a problem, but without specifying any particular type(s) of intervention